This podcast episode focuses on private credit, a type of direct lending to private companies. The host, David Stein, explains what private credit is, its characteristics (illiquidity, higher returns, greater lender involvement), and various ways to invest in it, including BDCs, closed-end funds, and private funds. He highlights the growth of the private credit market from $3 billion in 2010 to $1.6 trillion currently. Listeners learn about different investment vehicles like ETFs (BIZD, BDET), closed-end funds (MCI), and the potential benefits and risks associated with private credit investments, emphasizing the need to consider liquidity needs and fee structures. The episode concludes by advising listeners to carefully consider their risk tolerance and liquidity needs before investing in this asset class.
